All of us in the payday loan, installment loan, short term loan and car title loan industry are fully aware that the CFPB is about to finalize several rules, including arbitration, small dollar, third-party debt collection prepaid cards… having a deleterious and ultimate choke hold on consumers, the economy, and balance sheet lenders.

It’s time for Congress and President Trump to implement their authority under the Congressional Review Act (CRA) to blow-up these threats by the CFPB!

Meanwhile, we’re all forced to spend HUGE amounts of MONEY and Time dealing with CFPB rules that will likely NEVER SEE THE LIGHT OF DAY!

The structure of the CFPB has been determined to be unconstitutional by a federal D.C. Court!

So, let’s get back to serving the desires of the millions of borrowers who VOTE for payday loans, title loans, small dollar short term loans demonstrated by their DAILY USE OF OUR FINANCIAL PRODUCTS, and allow us to continue to develop new loan products at reduced rates and fees for our clients.

The CFPB is already a dinosaur that stifles competition, destroys consumer ability to make choices that fit their own unique financial situation and puts millions of dollars in the pockets of lawyers, consultants and lobbyists RATHER than allowing balance sheet lenders to focus on providing outstanding service at fair rates!

The future of our small dollar, short term lending industry has not looked this bright in a LONG TIME. There is still tremendous opportunity for “mom-and-pops,” venture capitalists, hedge funds, and vendors such as loan management softeare companies, ACH/ICL/DEBIT providers, tribes, money transfer system conduits… to enter and SERIOUSLY PROSPER in our industry!

Finally, to receive future updates from us, simply plug in your First Name and your email address. Then click on the “Subscribe Link” that you’ll shortly receive in your Inbox. No Spam and no Garbage. Spam is for jerks and we are not jerks!

Payday loan lenders and micro-lenders continue to suffer from “bank discontinuance” issues as a result of “Operation Choke Point” launched by the Obama administration in August 2013.

The Community Financial Services Association of America (CFSA) and Advance America said ” a preliminary injunction was needed to end the back-room campaign of coercion by the Federal Reserve, the Federal Deposit Insurance Corp, the Office of the Comptroller of the Currency, the CFPB [ruled unconstitutional by a D.C. Court] and competitors masking themselves as so-called consumer protectionists.”

U.S. regulators are collaborating in an attempt to stop banks from offering banking services to micro-lenders in an effort to force consumers in need of emergency funding to beg, borrrow or steal when facing financial stress.

Nearly 50% of U.S. residents are unable to access $400 cash [Link to Federal Report] when faced with the need to fix their car to continue working, purchase a medical prescription for their child or a family member, turn on their heating or electricity…

Advance America said its own situation became dire after five banks decided in the last month to cut ties, including a 14-year relationship with U.S. Bancorp, “putting it on the verge of being unable to maintain a bank account.”

The small lender national association injunction requests the federal court to “order the agencies to cease and desist from harming the reputations of Advance America and other CFSA members; from applying pressure on banks, encouraging them to terminate relationships with the banks and other CFSA members; denying CFSA members access to financial services; and from depriving members ability to pursue business.”

Instead of eliminating the “bad apples” of the payday industry, the agencies have “set about to choke off the life-sustaining financial oxygen that the entire industry, and millions of under-banked individuals, depend on.”

The CEO for CFSA, Dennis Shaul, stated that the results of Operation Choke Point for the payday loan, installment loan and micro-lending industry has been “dire.”

Mr. Shaul says that U.S. Bank has dropped its affiliation with several members, including Advance America, allegedly putting the company “on the verge” of being unable to maintain a bank account.

Another example by CFSA is thata smaller payday lender, DollarSmart Money Centers, was forced to close when it lost all its banking services.

CFPB Leadership Structure Ruled Unconstitutional by D.C Circuit Court

This just in from Ben Lane:

“In a unanimous decision of the three justices of the United States Court of Appeals for the District of Columbia Circuit, the court ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the government.”

‘Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,’ the court writes.

And it gets worse for the CFPB.

“From the court’s decision:By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.

What about the Speaker of the House, you might ask? The Speaker can pass legislation only if 218 Members agree. The Senate Majority Leader? The Leader needs 60 Senators to invoke cloture, and needs a majority of Senators (usually 51 Senators or 50 plus the Vice President) to approve a law or nomination. The Chief Justice? The Chief Justice must obtain four other Justices’ votes for his or her position to prevail. The Chair of the Federal Reserve? The Chair needs the approval of a majority of the Federal Reserve Board. The Secretary of Defense? The Secretary is supervised and directed by the President. On any decision, the Secretary must do as the President says. So too with the Secretary of State, and the Secretary of the Treasury, and the Attorney General.

In short, the court writes, the director of the CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.

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